Tds on works contract
This query is : Resolved
CA Ganesh Karthik
(Querist)
29 October 2011
Is TDS on works contract deductible on the whole contract value even if there is a clear bifurcation between material nad labour?
Eg. If the works contract value is for 1 Crore, and material is 60% and labour is 40%. Then is the Income Tax TDS deductible on the entire 1 Crore or only on 40 lakhs?
Thanks in advance..
Eg. If the works contract value is for 1 Crore, and material is 60% and labour is 40%. Then is the Income Tax TDS deductible on the entire 1 Crore or only on 40 lakhs?
Thanks in advance..
29 October 2011
With a clear bifurcation in invoicing, TDS is on labour cost but 60% material cost as in your case need to be VAT driven/charged and 40% with ST (Service Tax) driven, if ST applies, else a composite scheme comes in to operation and on total value of works contract TDS is need to be done apart from WCT
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